Corporations Issuing ________ Bonds Pledge a Tangible Asset as Collateral

question 61

Multiple Choice

Corporations issuing ________ bonds pledge a tangible asset as collateral to reduce the risk incurred by a bondholder.

• A) secured
• B) endorsement
• C) escrow
• D) replacement

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Definitions:

Controlling Shareholder

An individual or entity that owns a majority of a company's shares, granting them significant influence or control over the company's operations and decisions.

Separate Corporate Boundaries

A principle that maintains the legal independence between a corporation and its shareholders, protecting personal assets from business liabilities.

Piercing The Corporate Veil

Holding a shareholder responsible for acts of a corporation due to a shareholder’s domination and improper use of the corporation.

Promote Justice

The act of advocating for fair treatment and equal rights within legal, societal, or institutional contexts.